Answer:
The Price of Bond today = $997.07
Explanation:
Semi annual coupons = $1000 * 5% / 2
Semi annual coupons = $25
As 9 months is already over in the two year bond, the coupons are payable
3 months from now, 9 months from now and 15 months from now.
The present value of all these coupons and the principal should be equal to the price of the bond today. In case of continuous compounding, the formula for Present Value of any future Cash flow C is C*e^(-r*t).
Price of Bond = $25 * e^(-0.06*3/12) + 25*e^(-.061*9/12)+ 1025*e(-0.062*15/12)
Using the value of e as 2.71828
Price of Bond = $25 * 2.71828^(-0.06*3/12) + 25*2.71828^(-.061*9/12)+ 1025*2.71828(-0.062*15/12)
Price of Bond = $
25 * 2.71828 ^-0.015 + 25*2.71828^-0.04575 + 1025*2.71828^-0.0775
Price of Bond = $
25 * 1/2.71828^0.015 + 25*1/2.71828^0.04575 + 1025*1/2.71828^0.0775
Price of Bond = $997.07
Some of
the ways that you could find costumes for your film are the following:
<span>1. </span><span>It would first help to have actors that already look like they belong in the 1970’s. Having the authentic
look can help sell the costumes even more. </span>
<span>2.</span> Relying on second-<span> hand/low-budget
vintage stores would be the way to go.</span>
<span>3. </span><span>Go to a Fabric store or some place online and
order fabric to create, If there were a piece that
couldn’t be find and needed in the film.</span>
Answer:
$3 is Zoe's Bakery marginal cost and Short run profits are $150.
Explanation:
As a change in quantity is not specified, then, The Marginal cost is the average variable cost of producing 1 unit ($3). And the profit at 150 units produced and sell at a price of $5 is $150 as revenue is $750 and total cost is $600.
Before introducing yourself, it is imperative that you fully inform yourself about the two cases to be discussed, and what the effects of each have on the organization. It is also important to make a hypothetical situation of each case and to observe probable causes and effects that will assist in creating the probable scenario and in decision making.
Answer:
$30,000 increase
Explanation:
Piper Corp is operating at 70% capacity, and so we can produce the unit in-house at no increase to fixed cost we are already incurring. So we assume fixed cost for the extra production is zero
Without fixed cost the unit can be produced at $26, so cost of producing the units needed= 26*15,000= $390,000
To buy the product we need $24 per unit, so the cost of buying the needed units is= 24* 15,000= $360,000
The differential cost of making the part rather than purchasing it = Cost of inhouse production- Cost of Buying= 390,000- 360,000= $30,000
